1. KPI A key performance indicator (KPI) is a quantifiable value that a company or
business uses to measure how efficiently a business is achieving its most important objectives. Example A KPI for a B-School might be the percentage of students placed in a batch 2. BUSINESS METRIC A business metric is a quantified tool used to track and assess the status of a specific process. It differs from KPI as in it measures all areas whereas KPIs only focus on specific indicators. Example Current ratio in an organization measures the ability of the firm to pay off short term debts. 3. BALANCE SCORECARD It is a performance measurement system which focuses on 4 clear areas namely finance, learning, customer and business process. Example A firm cannot prosper only by concentrating on its financials, it has to keep in view the customer perspective, processes such as cost check, production check and also the learning and development needs of its employees. 4. DASHBOARDS A tool which visually shows the performance of an entity or a specific function by sending clear and non-confusing picture of the performance. Example Dashboards are prevalent in every organization as a measurable tool to measure performance, even different departments such as marketing, finance and HR have their own separate dashboards. 5. PROCESS & PROCESS MAPS It is a sequence of interdependent tasks or procedures which leads to a particular desired result. Example The controlling process in an organization starts with the task of setting standards and concludes with measurement of performance with the set standards. PROCESS MAPS The representation of a process as a workflow through a diagram is called as process mapping. Example Use of Swim lanes to distinguish various job responsibilities in a process flow 6. SYSTEM The interaction of interdependent activities in order to complete a specific task is called a system. Example Any organization. There may be different departments in an entity, but they all interact to achieve a common objective.
7. SIPOC It provides a framework to define and evaluate a process from beginning to
end. Example In case of mobile repair, the Supplier may be the mobile owner, the Input will be the repair inquiry, the Process will involve diagnosis of the problem, the Output will include notification of repair and finally Customer will be notified. 8. 5 Ms M1an, Machine, Money, Material and Mother Nature are considered to be the 5Ms of management. Man represents the physical workforce, Money equates finances, Machine is the technology, Material represents the basic ingredient and Mother Nature is the environment. 9. QUALITY A state of being defect free or the benchmark of excellence is known as quality. 10. DATABASE It is a storage tool from where information can be retrieved, updated and modified according to need. Example A school attendance register is a database from where student attendance records can be retrieved. DSS A computer based program that supports and analyses business data and presents it to users to enable them making decisions. It is widely used in organizations and helps managers to facilitate accurate decision making. 11. SOX The Sarbanes Oxley Act 2002 is a legislation passed by the US government to safeguard the rights of stakeholders in business organizations and to facilitate proper and accurate disclosures. It was passed in view of huge governance scams such as Enron (2001) and WorldCom (2002) to protect investor interest.